Freehold Versus Leasehold

In Singapore, properties are either granted freehold or leasehold status. The main difference is the legal ownership of the property.

Freehold

With a freehold property, the buyer owns the property and the title deed to the property. The buyer only pays the mortgage and not a monthly rent.

Freehold condominiums are often more expensive because you are practically owning the property, and the land on which it sits on, for as long as you want. The procedures to buy a freehold property is also more expensive and takes a longer period when compared to a leasehold property.

Leasehold

In Singapore, leasehold properties have a tenure of 99-, 999-, or 103- years. Upon expiration of the lease, the legal ownership of the property goes back to the government. There are some leasehold contracts that allow the buyer to buy the property or renew the lease. The main advantage of a leasehold property is that it is often much cheaper than a freehold property. You will, however, have to pay a monthly rent for the duration of the lease period.